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HomeMy WebLinkAboutMIN GREDC 2019/02/04 2018-2020Committee on Governmental Relations and Economic Development 3rd Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii February 4, 2019 CALL TO The regular meeting of the Committee on Governmental Relations and Economic ORDER: Development was called to order at 1:11 p.m., in the Council Chambers, Hilo, by Ms. Ashley L. Kierkiewicz, Chair. ROLL CALL: Present: Ms. Ashley L. Kierkiewicz, Chair Ms. Susan L. K. Lee Loy, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Maile Medeiros David, Member Ms. Karen Eoff, Member Mr. Matt Kaneali`i-Kleinfelder, Member Ms. Valerie Poindexter, Member Mr. Herbert M. "Tim" Richards, III, Member Ms. Rebecca Villegas, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 70: REQUESTS AN UPDATE BY ANDREW LEVIN, STATE LEGISLATIVE ADVOCATE FOR THE OFFICE OF THE MAYOR, ON EFFORTS MADE TO ADVANCE LEGISLATION BENEFICIAL TO HAWAII COUNTY From Council Member Ashley L. Kierkiewicz, dated January 14, 2019. Motion to Close File: Mr. Richards moved to close file on Comm. 70. Seconded by Ms. Lee Loy. CHR KIERKIEWICZ: Thank you my fellow Council Members, and thank you Mr. Levin, for joining us today. Great to see you. I was just wondering if you could provide us with an update on any progress that you've made at the legislature. Currently we have eight bills in the Senate, and 73 bills in the House GREDC-3 February 4, 2019 that are geared towards Hawaii Island. And so I was just hoping you could let us know any progress that you've made, in terms of moving some bills forward. If you had any insight into the likelihood of GET (General Excise Tax) flexibility, and any progress made on communicating to Legislators the importance of recovering money for Puna. (Note: At this time, State Legislative Advocate Andrew Levin came forward to address the members of the Committee.) MR. LEVIN: Thank you, Madam Chair, and thank you, Council Members. I'm pleased to be here, and thank you for accommodating me, my presence in Kona. We have filed 15 testimonies up to this date, and copies of all of them have been made available to you. There's 10 more being processed for hearings tomorrow, and 12 in process for Wednesday. The point of which the legislature is as of today is that bills have to get to their final committee by February 15, I believe. So the agendas are coming out hot and heavy, and we're trying our best to keep up. The Mayor's priorities continue to be the flexibility for the General Excise Tax, the TAT (Transient Accommodations Tax), homelessness and squatters, disaster relief of course for Puna. And then one small point is that ID identification for vacation rentals in advertisement, so that we can keep track. The testimonies we've submitted have been varied, I can go through some of the issues if you wish. Several deal with Puna. The big issues of course are the disaster relief and flexibility. On flexibility we are doing our best to work with the other islands, so that we can have common position. Maui has asked for flexibility in terms of adopting a GET. We think that Kauai could benefit from some flexibility, and certainly we could. So we are tracking various bills, none have had hearings yet. One that we're focused on is House Bill 1394, which was introduced by both Kauai and Big Island Legislators, so we're hoping that bill would get a hearing. But anything to do with flexibility we will be supporting. With respect to disaster relief there hasn't been any testimony yet. The lead for the Hawaii County Administration has been Diane Ley along with her committee that includes Roy Takemoto, Deanna Sako, and others. We've been talking to the speaker, the president, the money Chairs, the Big Island delegation, and our own County Council Members. Because clearly the message is that we need to come with one voice, and one position. Up to this point there has been some difficulty in finalizing a position or various numbers that have been floated. And if we all can reach a final position, and give a message to our legislators and to the money committees, and to heads of the legislature exactly what it is that we feel we need to move forward that would be a tremendous benefit, and we're working on that Page 2 GREDC-3 February 4, 2019 as we speak. And I know Diane has been in touch with you folks, as well as with Honolulu. So perhaps the other big issue is, the transient accommodation tax, because those bills are coming up right now. There's, one bill that would give a million dollars to each county, if the county jumps through certain hoops. Establish a special tax rate for vacation rentals, and enforce the various laws that the State has imposed. There's a separate bill that would allow the Counties to put a surcharge on the State General Excise Tax, perhaps on the TAT. That's a new bill, a new approach that might have merit. There's one bill that was replaced the $103 million, which is presently coming to the counties with this County imposed surcharge. That would probably be a loser for us. There's another bill however, that would allow County surcharge in addition to the $103 million that is presently coming to the counties. And obviously that would be plus. So we need to weigh in on those bills, and that's what we are doing. There's also yet another bill, which would re-establish the percentages that go—the TAT that goes to various counties. Keep the proportion between the counties the same, but get away from the $103 million flat amount and go back to the percentage that existed in prior years. And we will be supporting that if the blanks get filled in with an appropriate percentage. So I don't know if you want me to get into details on other bills, or response to questions. Please give me some guidance. CHR KIERKIEWICZ: Thank you, Mr. Levin. I have a couple of questions, but before I ask them I'd just want to ask my colleagues if they have any comments or questions. Ms. Lee Loy has a question. MS. LEE LOY: Good afternoon, Mr. Levin. Thank you. I know you're tracking all of the Big Island bills, or things that impact the Big Island. But I wanted to get your sense, and if you can't answer it at this time, maybe at our next meeting. Because I took a look at all the bills that were presented and there seems to be some overarching themes related to home rule, protections of our environment. And I was wondering if you got a sense, because frankly that helps us as members advocating for certain legislation of the legislature. What the other islands are thinking or what all the legislators are placing value in. Do you have a sense of what the overarching theme this year is at the Capitol? And if you don't have that answer I look forward for maybe a pulse on that at our next meeting. CHR KIERKIEWICZ: Mr. Levin, before you respond, I just want to ask that all of the courtesy sights, please check your microphones to make sure that they are off We are getting some static back here in Hilo. Thank you. Mr. Levin if you are prepared to answer Ms. Lee Loy, you can go ahead, thanks. Page 3 GREDC-3 February 4, 2019 MR. LEVIN: Council Member, I have to say that I don't have an answer, and I doubt that I will. I suspect that, you know, if you look at the bills that have been introduced, they probably vary all over the field. Some giving greater home -rule, some taking away. I think that actually a better read might be gotten by you folks through HSAC (Hawai`i State Association of Counties), and perhaps the Mayor through the Council of Mayors to get a better handle on how all the counties want to respond on that kind of issue. MS. LEE LOY: Yeah, thank you, Mr. Levin. But I'm going to push a little harder, maybe after first crossover or first decking, because we'll see what's emerging and what becomes valuable. So maybe food for thought going forward, you know, we have to look for synergies. It's incredible crucial. Because we all don't have lots of time, especially during the legislative session. So if you could maybe just keep your pulse on that a little bit, and share that with us. And as colleagues we might be able to create some new synergies just based on these overarching themes. So with that Chair. I yield. CHR KIERKIEWICZ: Thank you, Ms. Lee Loy. MR. LEVIN: If I may Chair? That certainly is a good point, and I will try to take that to heart. And I would ask you folks to do the same. As you gain insights, please share those with me as well. CHR KIERKIEWICZ: We will. Thank you, Mr. Levin. Couple questions. You mentioned that there was difficulty in finalizing a position with regards to Puna lava recovery. Ms. Lee Loy brought up an excellent point, we don't have a lot of time. And then before we know it, it's going to be the end of session, so where is this difficulty arising from? MR. LEVIN: Perhaps difficulty is the wrong word, I think that Diane Ley and her committee have been working extremely hard to finalize a proposal as requested by both houses of the legislature. I think that either has been done, or will be done probably within 24 to 48 hours. And will be communicated to legislature. And my understanding is that they are working with you folks as well to make sure that everybody takes the same position, as we're asking for the same benefits so that there's no confusion and it makes the job, our legislative team obviously, much easier if they can all be asking for the same thing. CHR KIERKIEWICZ: You know, I'm a little concerned, Ms. Lee Loy and I were on Oahu, what, was it about a week ago? One week ago today exactly, we had a breakfast with Big Island delegation. And it was there that Director Ley, and Finance Director Sako presented to our delegation the updated ask. And so I guess I'm a little concerned if that position has changed, because since then we've all been championing the same message, and it's a little awkward if the message is changing this late in the game. Page 4 GREDC-3 February 4, 2019 MR. LEVIN: Right. I think if you check with them, they can share with you if there has been any change, and if there has been why? Certainly having you folks on board is extremely important, so I'm hoping that dialog is taking place. CHR KIERKIEWICZ: Yes. I mean it's great the Ms. Lee Loy and I are here, and we are putting our creditability on the line at this point. If we're vouching for a story that keeps on changing, I don't think people are going take us as seriously. So I hope folks that are working on the plan consider that we are doing our best to smooth things over, because we recognize that there was some issues in the last few weeks with regard to the Puna lava recovery ask. And so Ms. Lee Loy and I will be following up with Ms. Ley, to make sure we are all on the same page. The last question I have is in regards to disaster relief, but it's not related to Puna. You know, I was skimming through some of the House and Senate bills, and I don't know if I was looking at things not too closely. But I'm just wondering if there's any money being asked for recovery as a result of Hurricane Lane? MR. LEVIN: Not that I can think of. When the disaster recovery bills are submitted they presumably cover any needs that we have. I mean clearly the focus has been on the lava flow, but if there are things that would benefit the Big Island as a result of Hurricane Lane damage especially if it was in the Puna District I would think that would be included. That question might better be directed to Diane Ley since the disaster relief issue is in her bailiwick. It's her kuleana. CHR KIERKIEWICZ: I hear what you're saying, but the question is not so much for additional lava, not for recovery funds for Puna as a result of Lane but I'm thinking of our friends along the Hamakua coast, who have suffered damage to infrastructure as a result of the hurricane. And so I just want to make sure that we're not forgetting about the rest of our communities that have been displaced by one disaster or another. I'm sorry, impacted by one disaster or another. And I just wanted to share that with you, because I know that you're one of our lead legislative advocates for the County this session. MR. LEVIN: Okay. Let me take that message back. Thank you. CHR KIERKIEWICZ: Yes. Any other comments or questions? Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Hey, Andy, how you doing? MR. LEVIN: Good, thank you. MR. KANEALI`I-KLEINFELDER: I had a question about that. I saw two pieces of legislature that went by regarding the boat ramp in Pohoiki. And also a Page 5 GREDC-3 February 4, 2019 subdivision build that was going by, and I just was wondering if you had heard anything about, or if there's any good track on those? MR. LEVIN: I'm not sure about that subdivision build you referring to. With respect to the boat ramp, there is a legislation and the experts are giving us, you know, some signals that we need to see what would be left after the ocean finishes reforming Pohoiki. Apparently sand is still being washed in, and that's going to have to be dealt with. So I'd really be getting beyond my level of expertise if I tried to give you any kind of good insight as to where that kind of bill may go. We're going to have to look to the experts on that. Our own department's, DLNR (Department of Land and Natural Resources), and so on. MR. KANEALI`I-KLEINFELDER: Okay. I forget the name of the legislature that was regarding subdivision, but that was of interest to me because of my district. I'll reach out to you, and with a number and get some information for you. MR. LEVIN: Okay. I know that we have gotten instructions from the leaders in the legislature, that they are not interested in funding subdivisions. But there are aspects that might be possible, I would need to talk to you and try to pursue this. MR. KANEALI`I-KLEINFELDER: Okay. Thank you. CHR KIERKIEWICZ: Council Chair Chung, you had your light on, did you want to make a comment? MR. CHUNG: Yeah. You know, I was out of the room for a little while, I may have missed something. Hi Andy. MR. LEVIN: Hi. How are you Chairman? MR. CHUNG: Are you aware of any bills that are being fast billed, or bills being fast -tracked with regard to the lava recovery right now? Or is that a pie in the sky kind of thought? MR. LEVIN: Well I don't think it's pie in the sky. At least not yet. There are efforts to fast-track some legislation. It's going behind the scenes at the legislature. And I have been asked to let the legislature do its secret sauce, and come up with what it can. So I think there are still avenues open for fast -tracking. The window is quickly closing. We should know in a very short time whether that's going to be possible or not. MR. CHUNG: Okay. And if those things are approved, when might we be able to receive monies as far as you can tell? Page 6 GREDC-3 February 4, 2019 MR. LEVIN: Yes, I'm not clear. Depends on what the legislation is, if it's coming out of next year's funds, fiscal year next year, then my understanding is it couldn't happen before July 1st. If it's coming out of this year's funds under appropriate terms, then I think that money can come quite quickly. And there's certain terminology that has to be used, and I think the Governor has to be onboard, which I assume he would be. But I really wanted to defer to the legislature to see what they can do for us. I know they gotI guess there's 13 of 12 Big Island Legislators all of whom are pulling as hard as they can to make good things happen for us. And we have some very sympathetic ears among the legislators who aren't from this island, so I certainly haven't given up yet. But neither is it a slam dunk, it's going to be difficult. And with your lobbying efforts and lobbying efforts of the other Council Members, you know, we may achieve a rapid success and have that money come quickly. MR. CHUNG: Well, you know, I really appreciate your work and that of the Department of Research and Development, Diane and Ron. As you know, and you heard it already today, really the people designated as being our point people for the disaster recovery, you know, are Ashley Kierkiewicz and Sue Lee Loy. And they've really been going up there quite often as you well know for that purpose. So whatever you can do to try and work with the two of them, you know, really appreciate it as well. MR. LEVIN: Okay. Totally will. MR. CHUNG: Thank you. CHR KIERKIEWICZ: Any other comments? Ms. Lee Loy. MS. LEE LOY: Thank you, Mr. Levin. And Ms. Kierkiewicz touched upon it a lot. We have been very intimate with both houses. Down on the homestead we scrapping, we scrapping for everything we can bring back to the Big Island. And it's very important to both Ms. Kierkiewicz and I that the integrity of the messaging remain helpful not harmful. So going forward if we can keep some bright lines of communication open, so that we are messaging consistently, I think we'll go a long way. Because we want to demonstrate the relationships and how we can accelerate those funds back here to truly help the Big Island. As Mr. Richards has pointed out, you know, we are focused on Puna but it springboards into a larger island -wide recovery which we need so desperately. So with that Chair, I yield the floor. Page 7 GREDC-3 February 4, 2019 CHR KIERKIEWICZ: Thank you, Ms. Lee Loy. Any other comments or questions? I will end it there. Mr. Levin if alright with you we'll ask you to come back with a quick update at the Committee meeting in Kona in a couple of weeks. I know that a lot happens at the legislature in that short timeframe, so if that's alright with you, we will send you a note and set up a date and time. MR. LEVIN: Thank you. CHR KIERKIEWICZ: Thank you. There's a motion on the floor to close file Communication 70, I'll take a vote now. All in favor say "aye." Vote on Comm. 70: The motion to close file on Comm. 70 was carried by the Filed following voice vote: Ayes: Committee Members Chung, David, Eoff, Kaneali`i-Kleinfelder, Lee Loy, Poindexter, Richards, Villegas, and Chair Kierkiewicz — 9. Noes: None. Absent: None. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. (There were none.) BILLS FOR The Chair directed the Committee to proceed to the next order of ORDINANCES: business, Bills for Ordinances. (There were none.) CHR KIERKIEWICZ: Can I get a motion to adjourn? Page 8 GREDC-3 February 4, 2019 ADJOURN- There being no further business, at 1:35 p.m., Mr. Richards moved to adjourn MENT: the meeting. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Eoff, Kaneali`i-Kleinfelder, Lee Loy, Poindexter, Richards, Villegas, and Chair Kierkiewicz — 9. Noes: None. Absent: None. Excused: None. CHR. KIERKIEWICZ: Meeting is adjourned at 1:35 p.m. Approved: Ms. Ashley Kierkiewicz, Chair Governmental Relations and Economic Development Committee AK/rk �C� ► �"-o Lit (Date) Page 9